Oregon Finance
Practice Questions & Answers (2026)

Explanation

VA loans, guaranteed by the U.S. Department of Veterans Affairs, typically require no down payment and no private mortgage insurance (PMI), making them a significant benefit for eligible veterans, active-duty service members, and surviving spouses.

Explanation

The Equal Credit Opportunity Act (ECOA) prohibits discrimination in any aspect of a credit transaction based on race, color, religion, national origin, sex, marital status, age, or because all or part of the applicant's income derives from a public assistance program.

Explanation

Discount points (also called mortgage points) are prepaid interest paid at closing to reduce the loan's interest rate. Each point equals 1% of the loan amount. Paying points makes sense for buyers who plan to stay in the home long-term.

Explanation

In an ARM, the index is the benchmark interest rate (such as SOFR) that fluctuates with market conditions. The borrower's actual rate is the index plus the lender's margin. As the index rises or falls, the borrower's rate adjusts accordingly.

Explanation

Lenders typically require PMI when the borrower's down payment is less than 20% of the purchase price (LTV greater than 80%). PMI protects the lender in case of default. Once the loan balance reaches 80% of the original value, borrowers may request PMI cancellation.

Explanation

FHA loans require a minimum 3.5% down payment for borrowers with a credit score of 580 or higher. Borrowers with scores between 500–579 must put down 10%. FHA loans also require mortgage insurance premiums regardless of down payment size.

Explanation

TILA requires lenders to clearly disclose the Annual Percentage Rate (APR) and total finance charges, among other loan terms, so borrowers can compare credit costs. The APR includes interest and certain fees, making it a broader measure of loan cost than the interest rate alone.

Explanation

Oregon primarily uses the deed of trust (rather than a mortgage), which allows for non-judicial foreclosure via a trustee's sale. This process is faster than judicial foreclosure and does not require court involvement as long as the proper statutory procedures are followed.

Explanation

Oregon's Trust Deed Act (ORS Chapter 86) establishes detailed requirements for non-judicial foreclosure, including mandatory notices to the borrower, reinstatement rights (to cure the default and stop foreclosure), and minimum timelines to protect borrowers.

Explanation

A due-on-sale (alienation) clause requires that the entire outstanding loan balance be paid off when the property is sold or ownership is transferred. It prevents buyers from assuming the existing loan without lender approval.